The Social Security Cost-of-Living Adjustment (COLA) Forecast for 2025 Was Just Updated, and It May Surprise Retirees
==========

The Social Security Cost-of-Living Adjustment (COLA) for 2023 was 8.7%, the largest in four decades. However, the Retirement Confidence Survey (RCS) found that many retirees still struggled financially. Social Security benefits received a smaller 3.2% COLA this year, disappointing many recipients. The latest projection shows Social Security's COLA shrinking to 2.6% in 2025. The COLAs are based on the average inflation rate during the third quarter, calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-W may not accurately reflect the spending patterns of Social Security recipients. Inflation has been increasing in recent months, with consumer prices rising faster than Social Security benefits. The average retired-worker benefit in February 2024 was $1,910.79 per month. If Social Security benefits get a 2.6% COLA in 2025, the average retiree would receive about $49.68 more per month. The official COLA for 2025 will be determined in mid-October based on third-quarter inflation data.

#SocialSecurity #Cola #Retirees #Inflation #Benefits

https://www.fool.com/retirement/2024/04/16/social-security-cola-forecast-surprise-retirees/?source=eptyholnk0000202&utm_source=yahoo-host-full&utm_medium=feed&utm_campaign=article